Regulatory Alerts2019-02-20
Prohibiting Seizure of Funds Deposited by Charities Into Bank Accounts Seized Under Court Orders
The Saudi Central Bank (SAMA) mandates that all domestic banks and financial institutions refrain from seizing funds deposited by licensed charities into court-seized accounts of executed parties, provided the deposits originate from authorized charity accounts and occur after the seizure order is executed. This directive implements a Ministry of Justice exemption aligned with Article 21 of the Execution Law, treating charity deposits similarly to Citizen Account allocations. To facilitate operational compliance, SAMA has assigned specific identification codes—(CODE (CHA) in field 26T and /CHARITY/ in field 70)—for fast payment system transfers, enabling banks to accurately identify and process these exempt transactions.
Share